It’s an underpublicised truth that a Kilburn residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Kilburn property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Kilburn will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Kilburn with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
|Accord Mortgages||85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.|
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|National Westminster Bank||Mortgage term plus 30 years.|
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
The lawyers that we work with procure Kilburn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Luke owned a 2 bedroom flat in Kilburn on the market with a lease of a little over fifty eight years unexpired. Luke on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Luke to exercise his statutory right. Luke procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.
In 2013 we were contacted by Dr Blake Cooper who, having acquired a garden apartment in Kilburn in January 2012. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Similar properties in Kilburn with an extended lease were in the region of £265,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease ran out in 2089. Having 66 years remaining we approximated the premium to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of expenses.
An example of a Freehold Enfranchisement case for a Kilburn residence is 4 & 4A Charteris Road in June 2009. the Tribunal held that the price to be paid for the enfranchisement of 4/4a Charteris Road to be £15,510 for at 4and £15,694 for at 4a This case related to 2 flats. The unexpired term was 70.02 years.